2024: A Record Year for the Housing Market
High housing costs are not new, but in 2024, records were set for the lack of affordability across the U.S. Housing market. The latest State of the Nation’s Housing report from the Joint Center for Housing Studies of Harvard University outlines some of these record-breaking costs that have impacted renters, homeowners, and those looking to buy.
In 2024, records related to the high cost of buying a home were beat
The median existing-home price hit a record high of $412,500, exceeding $400,000 for the first time in 2024. With this increase, the monthly mortgage payment on the median-priced home also hit a record high of $2,560, which is 40% higher than in 1990—even after accounting for inflation.
High costs contributed to record low levels of market activity
As home prices reached unattainable levels for the typical household, the average homeownership age for first-time buyers reached a record high of 38 years old. The year also saw the lowest number of existing home sales since 1995 at 4.06 million and the first decline in the number of homeowners in 8 years.
In 2025, home prices have cooled, but they remain at unattainable levels for many would-be buyers
- Buyers Now Need to Make an Extra $17K to Comfortably Afford the Typical Home: Home price has outpaced wage growth. Currently, buyers need to earn a salary of approximately $100,000 to the typical home priced at $367,969
- Home Prices Remain Out of Reach for First-Time Buyers: With the typical down payment among first-time buyers at 9%, first-time buyers faced an average monthly mortgage payment of $3,240 during Q1 2025.
- Rising Costs Make Homes Unaffordable in Most US Counties: In 99% of U.S. counties, median-priced homes were less affordable in Q2 2025 than historical norms.